KARACHI: The State Bank of Pakistan (SBP) has announced restructuring of Banking Supervision Departments (BSD) to implement risk-based supervisory framework.

The State Bank is in the process of implementing Risk Based Supervisory (RBS) Framework for its Regulated Entities (REs) with effect from July 01, 2021. In order to achieve the core objectives of ‘Risk Based Supervision Framework’, the supervisory functions of Banking Inspection Department-I (BID-I), Banking Inspection Department-II (BID-II) and Off-Site Supervision & Enforcement Department (OSED) have been realigned.

Accordingly, three supervisory departments (Banking Supervision Department-1 (BSD-1), Banking Supervision Department-2 (BSD-2), and Banking Supervision Department-3 (BSD-3)), will be created from July 1, 2021.

Each BSD will perform the functions of on-site inspection, off-site supervision and enforcement of the assigned institutions. The existing BID-I, BID-II and OSED shall cease to exist from July 01, 2021. The list of institutions allocated to BSD-1, BSD-2 and BSD-3 are enclosed.

The Directors will assume the charge of their respective Banking Supervision Departments with effect from July 01, 2021. Syed Jahangir Shah Director, BSD–1, Fazal Mahmood Director, BSD-2 and Shaukat Ali will assume the charge of Director, BSD–3.

Copyright Business Recorder, 2021